Guidelines on Issuing KORUS FTA Blanket Certificates of Origin and Quantity Requirements for U.S. Exports Released

Regarding your inquiry about issuing a Blanket Certificate of Origin (CO) for recurring exports to the United States, I will provide a detailed explanation from a customs broker's perspective. A Blanket CO is designed to streamline the FTA preferential tariff application process by eliminating the need to issue a CO for every individual shipment when the same goods are exported repeatedly. This is a key certification method provided under the Korea-U.S. Free Trade Agreement (KORUS FTA) and most other FTAs.

1. How to Specify the Blanket Period

Under the KORUS FTA, the validity period of a Blanket CO can be set for a duration not exceeding 12 months from the date the certificate is completed. According to Article 6.15 (Certificate of Origin) of the KORUS FTA, exporters or producers are permitted to set a validity period of up to one year when providing a CO to an importer.

Example: If the date of issuance is March 8, 2024, the validity period should be stated as "From 2024/03/08 To 2025/03/07." It is crucial that the end date is set to the day before the 12-month anniversary of the start date to ensure the total period does not exceed 12 months. During this specified period, the Blanket CO can be used repeatedly for the same goods, provided they continue to meet the relevant rules of origin.

Setting a blanket period is a practical convenience measure intended to reduce the administrative burden on companies and facilitate the efficient application of preferential duties in recurring trade transactions.

2. Requirements for Stating Export Quantities

Regarding whether the quantity must be stated when order volumes vary per shipment, the mandatory data elements of the KORUS FTA CO provide a clear answer.

The KORUS FTA Certificate of Origin does not include quantity as a mandatory requirement. For Blanket COs specifically, the essential requirement is the validity period. Therefore, you are not required to specify the quantity on the Blanket CO, and omitting it does not pose any issues under KORUS FTA regulations.

This regulation aligns with the institutional purpose of the Blanket CO. The certificate proves that the specific "good" itself satisfies the origin rules. Because recurring trade often involves varying quantities per shipment, the requirement to state a quantity is waived. Any identical goods exported within the validity period are eligible for preferential treatment even if the quantity is not specified. In fact, specifying a fixed quantity may lead to unnecessary complications, such as requiring a new CO for quantities exceeding the stated amount or causing discrepancies during customs clearance. Thus, unless there is a specific reason to do so, it is generally recommended and standard practice not to state the quantity.

3. Key Considerations for Using Blanket Certificates of Origin

• Consistency of Goods and Origin Criteria: All goods exported during the blanket period must maintain the same product description, HS Code, and origin criteria. If there are changes in product specifications, production processes, or raw materials that affect the origin status, the existing Blanket CO must be reviewed and a new one issued if necessary.
• Accurate Record Keeping: Exporters must maintain the CO and all supporting documentation (production records, raw material purchase invoices, cost sheets, Bill of Materials (BOM), etc.) for the period required by the KORUS FTA (typically 5 years from the date of export). This is essential for preparing for potential post-importation verifications by customs authorities such as the U.S. CBP.
• Communication with the Importer: It is vital that the importer understands the purpose and application of the Blanket CO to ensure smooth tariff benefits. Clear communication before issuance is recommended, and providing explanatory materials alongside the CO can be beneficial.
• Compliance with Regulations: Since specific requirements and validity periods can vary between different FTA agreements, it is best practice to consistently review the specific agreement text and guidelines provided by customs authorities like the Korea Customs Service and U.S. CBP.

While the Blanket CO is a powerful tool for enhancing FTA utilization efficiency, it requires precise understanding and systematic management. I hope this guidance helps you successfully utilize the Blanket CO system. Please feel free to reach out for further assistance.